The Financial Reporting Committee (FRC) recently published FRS 103 for Insurance Contracts which supplements FRS 102 and completes the new suite of Financial Reporting Standards replacing the current UK GAAP with effect from 1 January 2015. Commenting on the publication by the FRC Simon Nicholas, Director at KPMG, says it provides further clarity for insurers ahead of the 2015 deadline. 

“While the new standard does not represent a significant change from existing insurance accounting practices under IFRS, as had been feared, its publication is an important moment in the development of insurance accounting for the Island’s insurers, many of which still prepare financial statements under the old UK GAAP. For those who report under IFRS there are few differences, but additional disclosure and a more technical approach to reserving are now required compared to old UK GAAP.

The key thing is that the official starting gun has now been fired for all insurers to make sure they are ready and compliant with the new standard by 1 January 2015. Insurance accounting still has many changes to come, but at least now insurers have clarity over what they will need to comply with from the beginning of next year.”

Further information is available at http://www.kpmg.com/IM/en/services/Audit/Pages/future-gaap.aspx.

Photo - Simon Nicholas.